Indian tile makers face slow domestic demand, but forecast improvement - brokerage

Somany Ceramics

11/12/2023 08:47

** Indian tile makers are facing sluggish domestic demand,
but expect improvement in the coming months, brokerage Prabhudas
Lilladher says in a note 
    ** Brokerage maintains "accumulate" rating, PT 1,368 rupees
on Kajaria Ceramics  KAJR.NS , whose rivals include Somany
Ceramics  SOCE.NS  and Cera Sanitaryware  CERA.NS   
    ** Retail demand hit by inflation, construction hold-ups due
to costlier cement and iron ore delayed industrial demand - note
        ** Adds that Morbi players dialled down their annual
volume forecasts for FY24 after reporting lower volumes in H1 of
the fiscal
    ** Note says tilemakers in Gujarat's Morbi kept prices
unchanged in the last half-yr despite 11%-12% rise in gas prices
 
    ** Presently, Morbi's power needs are met in 50:50 ratio
between propane sources and city distributor Gujarat Gas
 GGAS.NS  
    ** Buying trends shifting towards premium tiles, slab tiles
gradually displacing marble and granite - note 
    

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))